Comprehensive Final Exam Module 1 - Part I the income tax school all done exam solution
4 views 0 purchase
Course
ACCOUNTING MISC
Institution
ACCOUNTING MISC
Comprehensive Module 1: Final Exam
1. Bob uses the cash method of accounting. During the tax year (calendar year), he had the following income and expenses:
• Interest on a savings account (credited to his account on January 2 of next year)
$ 68
• Dividend received from Virgini...
MODULE 1 FINAL EXAM
PART 1 THE INCOME TAX
SCHOOL
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,Comprehensive Module 1: Final Exam
1. Bob uses the cash method of accounting. During the tax year (calendar year),
he had the following income and expenses:
Interest on a savings account (credited to his
$
account on January 2 of next year)
68
Dividend received from Virginia Credit Union $814
Interest received on a 5-year certificate of deposit $91
(left in CD account to compound) 0
Penalty on the early withdrawal of the 5-year
certificate of deposit $
50
What is the amount of interest income Bob must report for the current tax year?
a) $1,792
b) $ 910
c)
$1,724
d) $1,674
2. The Smiths are married and have filed jointly in prior years. On July 29th of the
current tax year, the Smiths separated and filed for divorce. Mrs. Smith has
decided to file separately this year. Which of the following statements is true?
a) The taxpayers must be living apart from their spouse to file Married Filing
Separately.
b) The taxpayers must be living together as of December 31 to file Married Filing
Separately.
c) A married taxpayer can file Married Filing Separately if living together or apart.
d) The taxpayers must have lived apart from their spouse for the last six months
of the year.
3. Mark and Julie, married, with no dependents, have filed a joint return in previous
years. Julie died in March 2018. Which filing status would be most beneficial for
Mark in tax year 2018?
a) Single
b) Married Filing Jointly
c) Head of Household
d) Qualifying Widow(er) with Dependent Child
4. Which of the following pieces of information is shown/found on Form W2?
a) The taxpayer’s filing status, wages, tips, and other compensation.
b) The taxpayer’s wages, tips, and other compensation
c) The taxpayer’s refund and amount of tax withheld.
d) The taxpayer’s unreported tips along with the taxpayer’s reported tips
, 5. Dani is a 25-year old full-time graduate student. Following are the tax-related
facts we know about Dani.
Beginning in tax year 2018, Dani is no longer a dependent on her parent’s
tax return.
Dani was laid off at her job on October 15th and received a Form W-2 for
earnings from January through October.
Dani received unemployment income from October 15th through
December 31st after being laid off from her job.
Dani paid for her graduate school education in the current tax year and
is eligible for a nonrefundable tax credit.
Which Schedule(s) must Dani complete in addition to Form 1040?
a) Schedules 1 and 3
b) Schedules 1 and 2
c) Schedule 6
d) Schedules 3 and 5
6. Which of the following statements is most accurate as related to the
requirements of a paid tax preparer?.
a) A paid preparer must sign the taxpayer’s tax return and provide their SSN on
b) the return. The paid preparer must sign the taxpayer’s tax return and provide
their PTIN on the tax return.
c) A paid preparer must sign the taxpayer’s tax return, provide their SSN and
PTIN on the tax return.
d) A paid prepaprer must provide their PTIN on a taxpayer’s tax return.
7. Don, age 18, is being claimed as a dependent on his parent’s tax return. Which of
the following would require Don to file a tax return?
a) Don is married and has earned income totaling $12,000. Don also has
unearned income totaling $295.
b) Don is single and has earned income totaling $12,000.
c) Don’s only source of income was unearned interest income totaling $1,000.
d) Don has unearned interest income totaling $1,000 and earnings totaling
$11,000 from a part-time job.
8. Henry and Jane are married and file jointly. Jane’s birthday is 12/31/1953 and
Henry’s birthday is 1/1/1954. What is their filing requirement for 2018?
a) $24,000
b) $25,300
c) $26,600
d) $28,500
9. Mary’s husband, Bob, died March 12, 2018. She married Richard on December
15, 2018. What will Bob’s filing status be?
a) Single
b) Married Filing Jointly
c) Married Filing Separately
d) Head of Household
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FLOYYD. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
